Emerson, St. Louis, announced plans to spin off its Network Power business, which provides thermal management, AC and DC power, transfer switches, services and infrastructure management systems for the data center and telecommunications industries.
The move is part of a plan to streamline Emerson’s portfolio and move it out of a business line that accounted for about $3.8 billion in acquisitions while the company was building it. Emerson said in a release that the move will drive growth and accelerate value creation for shareholders.
Emerson also plans to explore strategic alternatives for its motors and drives, power generation and remaining storage businesses, and will conduct a complete review and assessment of its corporate services and structure to bring them into alignment with its smaller scale and sharper focus. The company will continue to be active in the process, industrial, commercial and residential markets. “We are aligning ourselves with the changing global marketplace and our customers’ evolving needs to drive Emerson and Network Power forward,” said Emerson Chairman and Chief Executive Officer David Farr. “Creating two, independent companies will position both businesses to continue as leaders and to pursue distinct strategies to drive profitable growth.”